HireQuest Adjusted Earnings Reach $0.22 per Share as Net Income Falls
Key Facts
HireQuest reported results on November 12, 2026, for the third quarter ended September 30, posting adjusted diluted earnings of $0.22 per share, compared with $0.23 in the same period of 2025. Adjusted net income was $3.037 million, down from $3.282 million a year earlier, according to the company statement published via PR Newswire. The comparison shows year-over-year declines in both adjusted profitability measures, despite revenue growth during the period. The analyst estimate of $0.24 per share on the original Zacks page could not be verified. It therefore cannot be concluded that the result missed expectations, while the company’s official figures confirm the level of adjusted earnings and the year-over-year comparison.
Revenue rose to $8.811 million in the third quarter of 2026, from $8.474 million in the corresponding quarter of 2025. Franchise network sales, a measure of activity across the network, fell to $131.2 million from $133.6 million. The company said sales would have risen 11.4% on a pro forma basis after excluding the impact of the MRINetwork asset divestiture. That exclusion changes the comparison: the reported figure is below the prior year, while the comparison after the divestiture points to activity growth. The company provided both figures in its earnings statement, which does not change the fact that reported sales declined year over year.
Reported net income fell to about $1.7 million, or $0.12 per diluted share, compared with about $2.3 million and $0.16 per share a year earlier, according to the earnings-call transcript published on Investing.com. These are rounded figures cited on the call, while adjusted net income was $3.037 million compared with $3.282 million in the corresponding period. Among the items listed in the company statement was a $1.298 million write-off of notes receivable during the quarter. The write-off provides context for the difference between reported and adjusted net income, alongside the year-over-year decline in adjusted net income itself. The comparison thus shows declines in reported and adjusted profitability, with the size of the drop differing between the two measures.
In the market, HQI closed at $18.53 in regular trading on November 12, up 1.53%, according to an Investing.com report. After the results were announced, the stock fell 4.53% in after-hours trading to $17.69. The move came after the regular session close, so it was separate from the stock’s gains during regular trading that day. The stock had closed at $18.25 on November 11, according to EL7 data. The prices show it moving from the previous session’s close to a gain in regular trading on the results day, then declining after the close following the report.
The CEO said weekly network sales had posted double-digit year-over-year growth during the previous two months, reaching rates in the high teens through early November. He added that management believes the improving demand environment during 2026 positions franchisees to finish the year and look ahead to 2027, according to the statement. He said: "We believe that the demand environment we've seen improve throughout 2026 positions our franchisees well as we approach year-end and look ahead to 2027." The company did not provide formal revenue or earnings guidance, according to the transcript. Management said it expects to discuss performance again when it reports fourth-quarter and full-year 2026 results in March.